Foreign Direct Investment and the Global Economic Crisis in the Western Balkan

The primary purpose of investment is to increase employment and development services further. In general, Eastern Europe, instead of searching of a new model more convenient to growth, is constantly hiding behind the global economic crisis. Local crisis in Eastern Europe is still very important, but it is analyzed in the context of the global crisis, which is unacceptable. We need to see exactly what the global effects are, and what are effects of the local crisis. In general, all Eastern European countries have high public spending, inefficient administration, weak investment in research and development problems and serious problems regarding the quality of education. The global economic crisis has resulted only in further reduction of the gross domestic product (GDP), increasing the deficit, unemployment, lack of liquidity in the real sector throughout Eastern Europe.Western Balkan countries are in urgent need for a transition. Previous transition has pushed countries to much larger problems than they had before. Now it is necessary to create a serious strategy of economic and legal conditions favorable economic and investment in export-oriented sectors, aimed at long-term development of infrastructure, human resources and relatively high rates of economic growth. DOI: 10.5901/ajis.2015.v4n2p47